Nanoco Group plc (LON:NANO) institutional investors lost 11% over the past week but benefited from longer-term gains

A look at Nanoco Group plc (LON:NANO) shareholders tells us which group is the strongest. We can see that institutions own the lion’s share of the company at 58%. In other words, the group is exposed to maximum upside (or downside risk).

Institutional investors suffered the heaviest losses after the company’s market cap fell by £16m last week. However, the 118% annual return for shareholders may have helped ease their pain. But they would probably be wary of future losses.

Let’s dive deeper into each type of Nanoco Group owner starting with the table below.

Check out our latest analysis for the Nanoco Group

LSE:NANO ownership breakdown October 4, 2022

What does the institutional ownership tell us about the Nanoco Group?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. As such, they typically consider buying larger companies that are included in the relevant benchmark index.

The Nanoco Group already has institutions in the share register. In fact, they own a respectable stake in the company. This means that the analysts who work for these institutes have looked at the stock and like it. But just like everyone else, they can be wrong. It’s not uncommon for the stock price to fall sharply when two large institutional investors attempt to sell a stock at the same time. It is therefore worthwhile examining the previous earnings development of the Nanoco Group (below). Of course, keep in mind that there are other factors to consider as well.

Profit and Revenue Growth
LSE:NANO Earnings and Revenue Growth October 4, 2022

Investors should note that institutions actually own more than half of the company, so collectively they can wield significant power. We find that hedge funds have no meaningful investment in the Nanoco Group. Our data shows that Lombard Odier Asset Management (Europe) Limited is the largest shareholder with 23% of outstanding shares. In comparison, the second- and third-largest shareholders hold around 3.5% and 3.1% of the shares, respectively. Nigel Pickett, the second largest shareholder, also happens to hold the title of Top Key Executive.

If we look at the register of shareholders, we can see that 51% of ownership is controlled by the 15 largest shareholders, meaning that no single shareholder has a controlling interest in the property.

While examining a company’s institutional ownership can add value to your research, it’s also a good practice to research analyst recommendations to gain a deeper understanding of a stock’s expected performance. There have been a few analyst reports on the stock, but it could become even better known over time.

Insider ownership of the Nanoco Group

The definition of an insider may differ slightly from country to country, but board members always count. Management runs the business, but the CEO is accountable to the board even if he or she is a member.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. In some cases, however, too much power is concentrated within this group.

We can see that insiders own shares of Nanoco Group plc. Insiders own £7.5m worth of shares in the £131m company in their own name. This at least shows some alignment, but we usually like to see larger insider holdings. You can click here to see if these Insiders have bought or sold.

General Public Property

With a stake of 34%, the general public, which mainly consists of individual investors, has a certain influence on the Nanoco Group. While this ownership may not be sufficient to sway a policy decision in their favor, they can still collectively influence company policy.

Next Steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand the Nanoco Group, we need to consider many other factors. For example, we discovered 5 warning signs for the Nanoco Group (1 is worrying!) you should know before investing here.

Eventually the future is the most important thing. You can access it free Report on analysts’ forecasts for the company.

Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not tally with the annual report figures for the full year.

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

The assessment is complex, but we help to simplify it.

find out if Nanoco Group may be over or under priced by reviewing our comprehensive analysis which includes the following Fair Value Estimates, Risks and Warnings, Dividends, Insider Trading and Financial Health.

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